Number
130108
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. MURPHY and HINES
Title
A substitute ordinance relating to a moratorium on the issuance of certificates of occupancy for furniture and appliance rental and leasing establishments.
Sections
200-43.5 cr
Analysis
This ordinance creates a moratorium, until after December 31, 2013, on the issuance of certificates of occupancy, temporary certificates of occupancy and conditional certificates of occupancy for furniture and appliance rental and leasing establishments.
Body
Whereas, As reported in the Milwaukee Journal Sentinel on April 26, 2013, according to a report by the Wisconsin Public Interest Research Group, rent-to-own stores:
1. Set the initial prices for the items they offer far above the cost of similar items offered at other mass-market retailers.
2. Charge their customers interest rates that are many times higher than the 18% annual interest rate they would incur if they purchased the goods with credit cards at other retailers (the research group found rent-to-own stores charge an average effective annual interest rate of 221%).
; and
Whereas, The Common Council finds that these business practices can have harmful impacts on the welfare of Milwaukee consumers, particularly the low-income and working-class residents who typically shop at rent-to-own stores; and
Whereas, The Common Council finds that the rent-to-own industry preys on low-income consumers, as evidenced by the proliferation and concentration of rent-to-own establishments in low-income and working-class neighborhoods; and
Whereas, Furniture and appliance rental and leasing establishments are classified as a permitted use in most of the city’s commercial zoning districts; and
Whereas, The zoning code’s current treatment of furniture and appliance rental and leasing establishments gives the City little control over the number and location of these businesses; and
Whereas, The Common Council wishes to review the City’s ...
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